Key Takeaways
- • Cantor Fitzgerald Investment Advisors (CFIA) will assume full investment management responsibilities for Coast Asset Management's fund of hedge funds products, expanding Cantor's alternative asset management platform.
- • CFIA is transitioning from a subadvisory arrangement to become the primary investment advisor for Coast Diversified Funds and other Coast multi-manager fund of hedge fund products, subject to customary closing conditions and regulatory approvals.
- • The transaction leverages Cantor Fitzgerald's capital markets expertise, institutional distribution capabilities, and deep relationships in the institutional marketplace to serve Coast's existing client base.
- • Kidron Corporate Advisors served as financial advisor to Coast Asset Management on the transaction.
- • The announcement positions Cantor as a competitive player in the alternative asset management space, specifically in fund-of-funds strategies targeting institutional and high-net-worth investors.
Summary
Cantor Fitzgerald Investment Advisors announced on October 24, 2012, that it will assume full investment management responsibilities for Coast Asset Management's fund of hedge funds business. The transaction marks an expansion of Cantor Fitzgerald's asset management platform and represents a transition from CFIA's existing subadvisory arrangement with Coast to a principal advisory role managing the Coast Diversified Funds and other multi-manager fund of hedge fund products.
The transition will proceed upon completion of client service and portfolio management responsibilities transfers and satisfaction of customary closing conditions, including receipt of necessary consents and approvals from all stakeholders. This phased approach ensures continuity for Coast's existing client base while formally consolidating investment management authority under CFIA.
Shawn P. Matthews, Chief Executive Officer of Cantor Fitzgerald & Co., emphasized the firm's strategic positioning in alternative asset management, stating: "The CFIA team is committed to being a leading provider in the alternative asset management and advisory space and providing investors with a customized approach to meet their unique needs." Matthews highlighted Cantor's competitive advantages, including extensive capital markets experience, broad distribution capabilities, and established relationships across the institutional marketplace. The firm underscored its commitment to customized advisory services and institutional-quality client support.
Kidron Corporate Advisors, a boutique investment bank, provided financial advisory services to Coast Asset Management throughout the transaction process. The arrangement reflects Cantor Fitzgerald's broader strategy to consolidate and expand its footprint in the fund-of-funds and alternative asset management sectors, capitalizing on institutional demand for diversified hedge fund exposure and professional portfolio management services.
The transition will proceed upon completion of client service and portfolio management responsibilities transfers and satisfaction of customary closing conditions, including receipt of necessary consents and approvals from all stakeholders. This phased approach ensures continuity for Coast's existing client base while formally consolidating investment management authority under CFIA.
Shawn P. Matthews, Chief Executive Officer of Cantor Fitzgerald & Co., emphasized the firm's strategic positioning in alternative asset management, stating: "The CFIA team is committed to being a leading provider in the alternative asset management and advisory space and providing investors with a customized approach to meet their unique needs." Matthews highlighted Cantor's competitive advantages, including extensive capital markets experience, broad distribution capabilities, and established relationships across the institutional marketplace. The firm underscored its commitment to customized advisory services and institutional-quality client support.
Kidron Corporate Advisors, a boutique investment bank, provided financial advisory services to Coast Asset Management throughout the transaction process. The arrangement reflects Cantor Fitzgerald's broader strategy to consolidate and expand its footprint in the fund-of-funds and alternative asset management sectors, capitalizing on institutional demand for diversified hedge fund exposure and professional portfolio management services.
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